Rivian Automotive, Inc. (NASDAQ:RIVN)shares jumped Tuesday after an analyst upgrade and growing anticipation surrounding the company's upcoming R2 SUV launch reignited investor interest in the electric vehicle maker.
Itay Michaeli of TD Cowen upgraded Rivian to Buy from Hold and raised his price forecast to $20 from $17, according to Benzinga Pro data.
The upgrade followed a detailed demand analysis for the upcoming R2 SUV, which suggests full-scale U.S. demand could reach 212,000 to 335,000 units, significantly above previous consensus estimates.
The analyst said the roughly 20% year-to-date decline in the stock makes the risk-reward profile attractive ahead of the R2 launch.
R2 Demand Outlook And EV Market Expectations
Michaeli noted that Rivian's upcoming R2 launch could offer a favorable risk-reward setup for investors. The firm said its recently introduced R2 demand model, released in March 2026, points to potential full-scale demand exceeding current consensus estimates, supporting a more bullish outlook.
According to the analyst, the R2 appears well positioned to benefit from what the firm views as a looming rebound in U.S. EV demand. The vehicle's expected launch in the first half of 2026 could also give Rivian an early-mover advantage among next-generation EVs equipped with Level 3 and Level 4 autonomous-driving hardware.
The analyst also highlighted Rivian's aggressive consumer autonomous vehicle strategy as a positive. With the stock underperforming year to date but the company's liquidity runway remaining intact, the firm said it sees a compelling risk-reward profile heading into the R2 rollout.
In a broader research note, Michaeli said sentiment around U.S. electric vehicles may be nearing a bottom. He added that the next phase of demand growth could emerge in 2027–2028, driven by new EV launches and the possible arrival of personal autonomous vehicles within the next 18 months.
RIVN Price Action: Rivian Automotive shares were up 9.45% at $17.37 at the time of publication on Tuesday, according to Benzinga Pro data.
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This article Rivian Stock Jumps As Analyst Sees Massive Demand For Upcoming R2 originally appeared on Benzinga.com
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